UOKiK rejects PKN Orlen's takeover of Naftoport

The Office for Competition and Consumer Protection (UOKiK) yesterday barred the country's dominant oil refiner and retailer PKN Orlen from acquiring Baltic coast fuel reloading terminal company Naftoport. PKN Orlen is already the largest stakeholder in the Gdansk-based company, with almost 49% of shares. Explaining the decision, UOKiK director Tomasz Aziewicz said, "We are supporters of keeping the oil and fuel market fully competitive. Just like we rejected the merger between Rafineria Gdanska and PKN Orlen, now we are trying to keep an even distribution of raw materials. The takeover of Naftoport by the largest producer of fuel in Poland is not in our favor." If Orlen had been allowed to take control of Naftoport it would have owned 51% of the country's crude reloading capacity and 70% of oil reloading capacity by sea. "The office believes that this would mean it strengthening its already dominant position in the sector," Aziewicz concluded. (Gazeta Wyborcza, p. 17; Puls Biznesu, p. 4; Rzeczpospolita, p. B2; Reuters) A.K.